Baktibayev against Nigmatulin

Новость на Казах-зерно:

An official dismissed for corruption doubts the competence of the speaker of the Majilis.

The «Meat Kings» stubbornly refuse to think about the development of agricultural processing in the country and are only concerned about the shipment of raw materials abroad.  After all, this is fast and easy money, besides, supported by a river of subsidies from the budget.

Raw materials for sale

Recall that in the Message to the people of Kazakhstan in 2018, the First President of Kazakhstan, Nursultan Nazarbayev, set the goal to increase labor productivity by 2.5 times in the Agro Industrial Complex and the export of processed products by 2.5 times.  These two orders are closely related!  After all, the processing of products creates the added value that increases the final labor productivity of the entire industry.  In addition, the development of processing solves a lot of other problems of the village, the main of which is jobs and decent wages.  Ask any villager what he needs first.  The Internet?  Water pipes?  Roads?  Gas?  That is all – yes, but secondarily.  The first need employment and the ability to receive decent wages for work.  The development of processing with the creation of year-round working industries – the key to solving this issue.

Other advantages of processing are guaranteed sale of agricultural raw materials by farmers, which stabilizes prices;  lower transportation costs, which take a huge part of the profitability;  increasing the food security of the country due to the rejection of food exports. You can continue further, but, in principle, enough.

So, the order was issued a year ago, in 2018. And what about the answer?  Instead of performing a clear and competent task, the Ministry of Agriculture of the Republic of Kazakhstan continued to trumpet about the need to increase exports of … meat!  That is, not processed products with high added value, but all the same raw materials!  As a result, not even meat went abroad, but live cattle — bull-calves to Uzbekistan and sheep to Arab countries.  What kind of labor productivity can we talk about here, if not that the meat-packing plants, but even the killer points were suddenly unnecessary …

Weak link

It is not surprising that the leadership of the Ministry of Agriculture of the Republic of Kazakhstan, so shamelessly ignoring not only the needs of the industry, but also the orders of Elbasy, resigned in early 2019.  And before the new minister Saparkhan Omarov again the question arose – how to revive the agro-industrial complex?  On May 24, parliamentarians gathered at a joint meeting of the chambers to talk about the prospects for the meat and dairy industry.  The speaker of the Majilis Nurlan Nigmatulin clearly identified the already well-known problem of the processing industry – the lack of raw materials.  And where will it come from when, when there is a shortage of meat and milk to close domestic demand, individual hot heads like Asylzhan Mamytbekov generate plans to increase exports!

So, Nurlan Nigmatulin proposed to create a network of service and procurement offices, which would become a link between the private farms (namely, they today produce the bulk of meat and milk in the country) and processors.  This step is intended to increase the load of meat and dairy plants, which today, according to the speaker of the Majilis, does not exceed 60%.  And this is despite the fact that only 33% of the meat produced in the country and 31% of milk are processed.

Everything is correct and logical, in full accordance with the instructions of Elbasy – to reveal the potential of the agro-industrial complex, increasing profitability due to the growth of processing and export of finished products with high added value. Along the way, providing employment to the rural population.

A pair of «kings»

And what would you think?  The «meat kings» burned all weekend, and the volcano burst on Monday – Maksut Baktibayev, general director of the Meat Union of Kazakhstan, issued a post to social networks that he was not ashamed to accuse Nurlan Nigmatulin of incompetence, or lack of awareness.  Well, of course, who else can judge the understanding of the situation by the speaker of the Majilis, as a non-retired official!

A little more detail on the personality of Maksut Baktibayev.  He is the general director of the Meat Union of Kazakhstan.  That same organization uniting the largest cattlemen of the country.  For the diagnosis, it is important to consider that the Head of the Meat Union in the position of chairman of the board is none other than the former Minister of Agriculture of Kazakhstan Asylzhan Mamytbekov.  You may ask how people who have spent their whole life in the civil service, suddenly flashed into the host of meat oligarchs of the country?  The answer to this question can be obtained by studying the biography of the same Maksut Baktibayev.  It turns out that the Meat Union is not the first case of his work under the authority of Mamytbekov.  When he was a minister, Baktibayev worked with him in the agricultural department.  And who do you think?  Director of the Department of Livestock!  Interesting?  Further, more exciting: in 2014, Maksut Baktibayev was sentenced to three years (conditionally) for committing a corruption offense – abuse of office.  After thinking about this fact, you can easily understand what the road looks like from officials to oligarchs.

Money for giants

But back to the post of Maksut Baktibayev.

The first dissatisfaction of the director general of the Meat Union was caused by the words of Nurlan Nigmatulin, when he cited the example of Russia, where half of the loans are issued to small family farms.  Whereas in Kazakhstan there is an absolute bias in favor of large agroformations – 96% against 4% for lending «trivia».

«Considering that agricultural production is mainly small and medium forms of management, it is necessary first of all to address the issues of availability of financing for these categories of business,» said the speaker of the Mazhilis.

The correct message!

But Baktibayev simply burst in and accused Nurlan Nigmatulin of poor awareness:

«It is clear that the Speaker cannot physically know all the details in all sectors of the economy, but, apparently, the person who wrote the report clearly had his own mind, guided only by him », said Baktibaev.

Where does this reaction come from?  Obviously, out of fears that the current system of subsidizing and lending to agriculture in Kazakhstan, created by the previous team of the Ministry of Agriculture of the Republic of Kazakhstan and sharpened to large market participants (precisely those who unite the Meat Union), will be changed and the money will go past the «meat kings»!

Meat «Eldorado»

The second explosion in the depths of Maksut Baktibayev caused Nurlan Nigmatulin to speak about the need to create a system of service-procurement centers in the country.  We explained its logic earlier.  However, the general director of the Meat Union turned out to have its own opinion.  And he again accused the Speaker of the Majilis of lack of information:

«Now the most interesting and paradoxical.  High imports of dairy products (cream, butter, cheeses, etc.) from Russia and Belarus turn out to be due only to the low load of our dairy plants.  In addition, the solution of the problem lies in the development of networks of SZTs (service and procurement points).

It was a powerful setup by the author (or authors) of the report, because it is clear to everyone that the problem of importing dairy products from Russia or Belarus needs to be addressed through a set of measures – primarily increasing dairy farms with a total production capacity of 600-700 thousand tons milk, strengthening non-tariff measures of regulation and quality control (we are in the Customs Union), reducing the cost of domestic milk, but not at all due to the construction of the next SZTs!»- wrote Maksut Baktibayev.  Apparently, it is not known that out of 5 million tons of milk produced in Kazakhstan per goal, 4 million is the share of private farms.  In general, the country processes only 1.5 million tons.  This means that 3.5 million tons of milk from private farms remains out of the attention of processors – also due to the lack of harvesting systems.That is why Nuralan Nigmatulin proposed the creation of an ECC network.

But Baktibayeva, of course, is more concerned not with milk, but with meat.  And for this industry, the emergence of SZTs is the creation of a direct competitor to that clever system of «harvesting» gobies, which the Rural Ministry of Agriculture has carefully built all last year with the help of Asylzhan Mamytbekov and the Meat Union.

Recall what this «meat Eldorado» looks like: simple villagers rent from enterprises that are members of the Meat Union of purebred bulls.  At the same time, the villagers also bear all costs for the maintenance of the bull.  In «gratitude», the farmer gets the offspring of a purebred calf.  Feeds him and raises the most difficult first half a year.  And in the fall – rents at a fixed price to the owner of the bull.  In addition, the owner of the bull receives and powerful state support, and has the opportunity to sell an adult bull after a couple of months of grain feeding at an already much higher price.  And if you send it for export, then in general you can get rich!

And now, imagine, here suddenly a network of SZTs will appear in the country.  Not only will the part of the state support that the «meat kings» now rely on take, but the farmers will also have the choice of where to turn in their half-year-old calf – at a low price at a low price, or through the SCC to a local processor that will be ready to pay the real price, as interested in quality raw materials.

Maksut Baktibayev will not endure such a «blow in the gut»!

Sweet stuff

After that, in the opus, the general director of the Meat Union is followed by a very delusional argument about how to ensure a decent salary to the villagers.  And he doesn’t find anything better, how to offer … the state to pay extra to employees of the enterprises of the agro-industrial complex.

«For example, a farmer pays a breeder 80 thousand tenge, since the profitability of a business does not allow paying more.  The state says – we will give you half of the total payroll of your company, but the minimum wage should be 150,000.  And of course to approve the rules so that dead souls are not taken to the state.  According to official revenue, either by livestock, or in any other way.  The second proposal (from the NPP) is to fully exempt payroll for employees of the agro-industrial complex from taxes.  The load is about 40% of the salary.  Many go into the shadows, work without contracts», Maksut Baktibayev shares with sweet dreams.

That is, you understand, a person works on some feed platform, part of the Meat Union, and he is paid by the state treasury not for the economical Maksut Baktibayev, but for half of his salary!  Conveniently!  Apparently, this is a dream of many oligarchs – not to pay taxes to the budget and wages to those employees who are bending their backs for the sake of their profits.  And the state not only subsidizes their business, but also takes the maintenance of the staff!

Low proportion

The general director of the Meat Union did not confine itself to criticizing only the speeches of Nurlan Nigmatulin.  He also expressed displeasure with the position of the Chairman of the Agrarian Committee of the Majilis Berik Ospanov.  Along the way, hooking and «KazakhZerno.kz» news agency:

Maksut Baktibayev described several points from the statements of the parliamentarian as «controversial or obviously provocative».  And, of course, among them were «golden» feedlots and at least «golden» Anguses with herefords, plus – all the same service and procurement centers:

«He claims that the fattening of the Cattle site is not needed, are empty in the country, cannot collect cattle (he probably has outdated data for 5 years, and the rhetoric is similar to the popular Kazakh-Zerno hyip-resource),

– expressed concerns on the import of livestock from Brazil and other countries of South America, despite the fact that they are world leaders in the production and export of meat, and the Angus and Hereford breeds already have global genetics that are not related to continents

– again he repeated the thought that had already sounded at the beginning of the meeting about the need to support objects of the ORC and SSC», complains the general director of the Meat Union about what he heard from Berik Ospanov.  Experiences are understandable – each of these decisions will reduce the profitability of the system that has long lined up around the Meat Union.

But this must be done if the parliament and the government of the country really want to fulfill the orders of Elbasy.  Without the development of agricultural processing, without the support of private farms, without creating a system of purchasing products at a fair price, without the availability of credits, there will be no agricultural development.  This is confirmed by the data cited by Nurzhan Altayev, mazhilisman: over the past year (when the Ministry of Agriculture serviced the meat project), the share of agriculture in the country’s GDP fell from 4.8% to 4.3% …


Mamytzhan Asylbekov


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